OMB: E-gov projects will help reduce bad payments

Bush administration officials expect that two of the 24 e-government initiatives will help the government lower the $20 billion in erroneous payments agencies made in fiscal 2001.

E-Payroll and E-Grants eventually could improve automation and tracking of money, according to an Office of Management and Budget report released Friday. The Office of Personnel Management is managing the E-payroll project, which will consolidate 16 civilian payroll processing systems into three.

E-Grants, managed by the Health and Human Services Department, will standardize and streamline federal grant programs. OMB officials estimate the initiative could save the government $1 billion in administrative costs alone.

The report, Financial Management Status Report and Governmentwide Five-Year Financial Management Plan, also said that financial system and computer security weaknesses were two of the most prevalent troubles auditors found. OMB said agencies also failed to account for billions of dollars in intra-agency transactions.

OMB said the two biggest mispayers were Medicare, which erroneously paid out $12.1 billion, and the Housing and Urban Development Department, which handed out $3.3 billion in errant rental subsidy payments.